The DWF Group's capital allocation policy is to retain sufficient capital to fund ongoing operating requirements and to invest in the Group's long-term growth, while also paying attractive dividends. The Group has a target dividend pay-out ratio of up to 70% of DWF Group plc's Adjusted Profit After Tax.
The Group paid a final dividend in relation to FY20 of 0.75p per share, taking total dividend in relation to FY20 to 3.25p. The Board has approved an interim dividend for FY21 of 1.50 pence per share which is payable on 5 March 2021 to shareholders on the register as at 29 January 2021. The Board has given careful consideration to the quantum of the interim dividend to ensure that it is progressive but retains flexibility whilst there remains a degree of uncertainty as to the trading environment for the remainder of the financial year.
Other financial highlights include:
Group revenue growth of over 15% (3% organic) at a gross margin of just below 50%
o 3% growth in Insurance Services division, all organic
o 7% growth in Commercial Services (including Managed Services), with organic revenue flat as activity levels recovered through H1 from the sudden weakness experienced in March and April due to COVID-19
o 58% growth in International, with RCD acquisition in Spain adding £15.7m of revenue, alongside organic growth of 3%
o 19% growth in Connected Services, all organic
Adjusted PBT of £13.4m which is 23% higher than HY20 and close to the FY20 comparator of £15.2m
Reported PBT is a loss of £11.0m, which differs to Adjusted PBT due to significant, largely non-cash, acquisition related expenses treated as non-underlying items
£19.6m free cash flow generated in H1 versus an outflow of £9.2m in the prior year, assisted by c£14m of COVID-19 related deferrals
Net debt of £58.5m is £8.9m higher than HY20 and a reduction of £6.4m versus April 20 position despite £12.4m of acquisition related outflows in HY21
